Fantasia Continues to Build O2O Social Community Services Operation Platform and Speeds Up International Expansions

(6 June 2014, Hong Kong)—Fantasia Holdings Group Co., Limited (“Fantasia” or the “Company”, stock code:1777) is pleased to announce that, on its way to creating China’s largest social community services operation platform, Fantasia is registering rapid growth across the full range of it asset-light businesses, from such as Colour Life, financial services, commercial community services, cultural and tourism, commercial services, and senior citizen services ; as the Company also quickens its pace of internationalization. In addition, the sales in the community-based traditional property business began to pick up, also gained pace, with contract sales of approximately RMB413 million in May, up 64% month-on-month.

The Company’s overseas investment is coming to fruition in testimony to a successful international expansion strategy. In May, Fantasia launched globally Singapore Love Forever, its all-new overseas property project. Catering to overseas investment, property ownership and living needs, Singapore Love Forever is a residential project on Derbyshare Road in District 11, at the heart of the city’s premium traditional downtown location adjacent to Novera subway station, fully furnished with swimming pools, gyms, BBQ grills and rooftop gardens.

In the Meantime, the company’s culture and tourism subsidiary is also actively embarking on overseas expansion. A successful acquisition was completed for Hotel 373 on the Fifth Avenue of New York, the United States, a property seated in the central business district of New York and steps away from the city’s landmarks including the Empire State Building, Macy's, Madison Square Garden and the New York Public Library. Just a 5-minute walk from the subway station, it enjoys convenient traffic links and is favorably sited.

Despite the lingering tentative mood in China’s real estate market during May, Fantasia continued to carry out a market strategy featuring mainstream positioning and proactive sales tactics to capture the dynamic of market changes. In May, Fantasia increased stepped up launches in Tier-2 cities including several rigid-demand residential projects, which recorded positive sales amid weak market sentiment. Suzhou Special Town Phase II continued a strong sales momentum from Phase I of last year, with over 90% subscription rate. Upon the swift launch of Love Forever in Wuhan, the Company’s first project in the city, it quickly became a star performer with subscription amount of over RMB120 million for the first batch of launched units. Over two 230 flats in Chengdu Fantasia Town were subscribed; and limited-edition high-rise units in Tianjin Love Forever also opened to warm market reception.

Mr. PAN Jun, Chairman & CEO of Fantasia, said, “There is a strong seasonal tempo to the cycle of the real estate business with fluctuant monthly sales, and most real estate enterprises’ sales mainly come from the second half of the year.” Mr. Pan believes current sales are in line with the Company’s beginning-of-the-year plan and expectations, and Fantasia’s full-year contract sales will maintain steady growth.

Overall real estate prices in China’s major cities remain stable. Policy signals from relevant authorities point to possibilities for non-tier-1 cities to autonomously adjust existing- purchase restrictions, which might spell structural polarization in the real estate market. On May 12, China’s central bank explicitly requested banks to support first-time homebuyer mortgage programs at a housing financial service conference. Purchase restrictions in certain cities are loosening up in this broader context as major banks phase in targeted mortgage releases. As a result, industry analysts anticipate recovery and growth of real estate sales in 2H 2014.

As planned, Fantasia will continue to follow closely market changes and launch additional high-rise rigid-demand units of Huizhou Fantasia Special Town and rigid-demand residential home units of Long Nian International Plaza in June. In the meantime, the Company is actively exploring new programs of to mitigate environmental impacts of property development in a pilot project in Suzhou.   

The Company’s financial service business maintains steady growth. As of the end of May, its micro-credit business extended loans amount to over RMB200 million.

Fantasia held its 2014 Annual General Meeting in Hong Kong on 14 May 2014. During the meeting, all the Company’s resolutions were adopted by majority. Mr. PAN elaborated Fantasia’s strategic shift towards asset-light operations at the meeting. Mr. PAN suggested that Fantasia has grown into a well-recognized O2O platform operator in the industry with robust future growth potential.

In May 2014, the Company’s “U Hotel” has won the “2013 Most Progressing Hotel Brands of China” award in the “9th China Hotel Starlight Awards”, which are acclaimed as Oscar of China Hotel Industry.